Which of the following statements is not true for fair value method accounting?
A) The investment account is recorded at current fair value
B) Interim changes in fair value may or may not affect income depending on classification
C) Dividends are not reported as income but instead are treated as a return of the capital invested
D) Used when an investor company owns less than 20% of the acquired company
E) Uses current fair value to report investments that are active and have published prices each time a balance sheet is created

Question

Quizplus · Accepted Answer

Dividends are reported as income under fair value method, rather than a return of the capital invested which is the case for equity method investments.

Which of the Following Statements Is Not True for Fair